Question
Giants Inc. has issued two types of debt on January 1, 2023, the start of the companys fiscal year (Jan.1-Dec. 31) 1. $30 Million par
Giants Inc. has issued two types of debt on January 1, 2023, the start of the companys fiscal year (Jan.1-Dec. 31) 1. $30 Million par of 10 year, zero-coupon bonds at a price to yield 12% per year. 2. $15 million, 10-year, 10% unsecured bonds, interest payable semi-annually to yield 12%, on July 1, and on January 1. Instructions: 1.Prepare Bond Amortization Schedules for both bonds using Straight-line and Effective Interest Method. 2. Prepare Journal entries for both bonds for 2023, 2024, and 2025 using Effective Interest and Straight Line Methods of amortization.
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